Lockheed Martin (LMT) NYSE:LMT made a stand at long-term support of 335. Although it is beneath the long-term pennant, the bullish engulfing candle on Wednesday, September 22 indicates a potential continuation candle back inside the pennant. If this occurs, the potential for a breakout into the October 25th earnings is very likely. Not to mention, the defense sector has been lagging over the course of the last 3 months, presenting another catalyst for a bullish position.
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No matter how you slice it, this strategy for Lockheed Martin (LMT) from September 2021 has played out with a dash of hopium and a stroke of good charting.
As we consolidate above 430, notice the long and the short sides of the chart.
LONG: Bullish pennant above support has formed. SHORT: A head and shoulders pattern is emerging.
If you have a position, it would be smart to set stops at 425.